Its subsidiary, XLMedia, has announced a conditional agreement to sell its North American business assets to Sportradar for up to $30 million.

The deal includes a $20 million upfront payment and an additional $10 million due in April 2025, contingent on performance.

The transaction is expected to be completed following shareholder approval at the general meeting scheduled for November 7, 2024.

After this sale, XLMedia will become a cash shell company under AIM Rule 15, focusing on distributing the proceeds from this sale and previous transactions involving its European and Canadian assets.

The total proceeds from both sales (after deducting costs and liabilities) could reach $72.5 million.

In 2023, the North American business contributed approximately $27.5 million in revenue and $5.5 million in adjusted EBITDA, making Sportradar's offer about 5.5 times the adjusted EBITDA.

The XLMedia board believes that selling the North American business will maximize shareholder value. Despite long-term growth opportunities in the US market, the board considers that the company's current scale limits its competitive position in the region.

Therefore, the sale to Sportradar represents a decision aimed at unlocking value and returning proceeds to shareholders.

Chairman Marcus Rich commented on this development, saying: "Committed to maximizing shareholder value, the board is pleased to have reached an agreement to sell the North American business to Sportradar, pending shareholder approval.

"We expect to distribute the first net proceeds to shareholders before the end of the year."